In an Efficient Market, Daily Abnormal Returns

question 14

Multiple Choice

In an efficient market, daily abnormal returns:

• A) are very volatile.
• B) tend to relate to news announcements made within the past 10 trading days.
• C) relate only to news announcements made during the past 2 trading days.
• D) relate only to news announcements made after the close of the previous trading day.
• E) exist only if non-public information is used for trading purposes.

---

Definitions:

Quality

Refers to the standard of something measured against other things of a similar kind; the degree of excellence of something.

Psychological Test

A standardized measure of a sample of a person’s behavior.

Socioeconomic Status

Represents an individual's or group's economic and social position relative to others, based on income, education, and occupation.

Narcissism

A personality characteristic marked by an exaggerated feeling of self-worth, an intense desire for abundant attention and admiration, coupled with an absence of compassion towards other people.